Update on the Market Decline

I’m hopeful that the market decline will end soon and that a strong recovery is at hand. I’m also hopeful that the level of your assets will maintain their levels so that that the recovery will be substantive.

First of all, we need this mayhem in the market to recede. “Mayhem” means pure, indiscriminate selling of all stocks regardless of their particular conditions or position in their respective marketplace. This is what has been happening over the past two weeks.

I also want to reassure you that a version of the bull market will soon return and this will set the stage to make a good return.

Just as important, is to remind you that your account carries a defensive mechanism. I anticipate your assets will not bear the full brunt of whatever market decline we end up having because our weighting to equities is much lighter than it was in September. Accordingly, I have moved a heavy percentage of your assets to safe investments in order to wait out this storm. This “dry powder” should serve us well until the market makes a low and begins to turn up.

Where can investors find encouragement?

Update on the Market Decline

Relief could come from the Federal Reserve. The market would like to see the Fed send a signal the signal that it will readily slow its planned rate hikes if the economic data is soft enough.

It is also encouraging to remember the fourth quarter is typically the strongest of the year and it is exceedingly rare for the market to lose its yearlong gain after being up through September.

In investing, crisis equals opportunity. Since we have taken the appropriate defensive measures, how can we make this recent selloff work in our favor? I plan to invest in chosen stocks at these low levels in the market in order to capitalize profits from any short-term bounce in the market.

One of the stocks I am determined to make a good return on is Shopify. They reported earnings today and this company is on its way to being a billion dollar in sales technology company, up from $673 million last year. It is a fascinating, high growth company that specializes in offering commerce solutions to entrepreneurs and small businesses. It recently opened a retail storefront in LA in order to help people gain awareness of its service.

The link below is an hour-long interview with its founder. He is a very thoughtful guy. I hope you enjoy.

Click Here to Listen to the Interview

Peregrine Asset Advisers ● 9755 SW Barnes Rd. Suite 295 ● Portland Oregon 97225
503.459.4651 ● 800.278.1420 ● www.peregrineaa.com

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*Past Performance is no guarantee of future results. Investment management involves the possibility of losses. Significant general stock market moves up and down can influence the performance of client portfolios. Composite returns are based on client portfolios of over $100,000. Not all clients are included in the composites. All returns include the reinvestment of dividends. All returns are net of fees. Composite returns are derived from aggregated, time weighted returns for clients of Peregrine Asset Advisers. Individual client returns can deviate from the composite returns. While Peregrine uses the S&P 500 as a benchmark, Peregrine does not attempt to mimic the structure of this index. Individual client portfolios vary. The number of stock positions also varies per client.